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Bridgeport Corporation purchased $63,900 of 4 -year, 7% bonds of Hu Inc. for $59,689 to yield an 9% return. It classified the purchase as an
Bridgeport Corporation purchased $63,900 of 4 -year, 7% bonds of Hu Inc. for $59,689 to yield an 9% return. It classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually. Assuming Bridgeport applies ASPE and has chosen the straight-line method of discount amortization, prepare the same three entries requested above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit (To record purchase of bond investment) (To record collection of semi-annual interest) (To record collection of semi-annual interest)
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